Part number count and complexity reduction – while adding product flexibility

The client

Trane is a leading global provider of residential heating, air conditioning and commercial HVAC (Heating Ventilation Air Conditioning) solutions that reliably improve indoor environmental quality.

The challenge

The challenge for the new product is to strengthen Trane’s position as a market leader by offering state-of-the-art performance and an increase in the product offering while at the same time reducing material and labor costs. One key to reach the cost savings is to create a Modular Platform with greatly reduced unique part numbers.

The solution

One of the outputs was a detailed understanding of the complexity cost in Trane. Modular Management helped Trane compile the overall business case of replacing the M -Series with a new platform. Using its unique methods and tools, Modular Management supported the cross-functional team within Trane to develop the Modular Architecture. The complexity-related indirect costs described above provided tools that enabled the team to evaluate both indirect and direct cost in concept and design decisions. Modular Management supported the engineers with quality assurance to meet the part number reduction goals throughout the design work.

The results

As a result, the reduction in hard billed part numbers was 58 percent while the product offering in Air Handling Units increased. Trane could increase their offerings in number of options and next generation’s products could be developed 6 months earlier than before.

To find out more about the benefits Trane gained from modularity and how Modular Management helped implement a new product architecture, download the Trane case story (302 kB)